Strides Arcolab extends fall on buzz of new hurdle for Mylan's deal

DIPP raised fears that foreign multinational firms were taking over the few remaining domestic cancer drug-making facilities.

Strides Arcolab has dipped 6% to Rs 790, in otherwise firm market, on reports that the Department of Industrial Policy and Promotion (DIPP) has put on hold the company’s unit sell plan on concerned that ownership of critical cancer drug-making facilities will fall into foreign hands.

The stock of pharmaceutical company has fallen 11% in past three trading sessions on BSE compared to unchanged value in benchmark Sensex.

The DIPP, the government body that makes FDI (foreign direct investment) policy, raised fears that foreign multinational firms were taking over the few remaining domestic cancer drug-making facilities, the Economic Times report suggests.

On Friday, the Foreign Investment Promotion Board (FIPB) deferred a decision on the deal, added report.

On February 28 this year, Strides Arcolab and the US-based Mylan Inc signed a massive $1.6 billion plus agreement by which the US drug major was to acquire Agila Specialties, the injectable medicine business of Strides.

Today, the stock opened at Rs 845 and hit a low of Rs 783 on BSE. A combined 858,858 shares have changed hands on the counter so far on BSE and NSE.